I am in the dilemma whether to buy MRTA or not.
After thorough research from the internet, you may read through this:
Conclusions:
Depend on individual case.
For me:
1) If you have no dependent and can pay the loan fast, not necessary to buy MRTA, MLTA or term insurance is better option.
2) No need to buy whole tenure, my loan tenure is 25 years, I only opt for 15 years which cost about RM 4k.
3) If MRTA premium inside the loan, do opt for FLEXI loan which can reduce the interest.
Useful table:
The table below shows the different between MRTA and MLTA
| MRTA | MLTA | |
| Purpose | Protection | Protection, Saving & Cash Value |
| Protection | Reducing Protection throughout the loan tenure. | Protection is leveled throughout the loan tenure. |
| Transferability | Non transferable on New Purchase or Refinance. Premium will increase while age increases. | Transferable. One MLTA can be attached to Any Loan. Transferable on New Purchase or Refinance. |
| Cash Value | Reducing Cash Value throughout the loan tenure. Normally is much lower than Premium, and drop to RM0 at the end of loan tenure. | Fixed Cash Value (Guaranteed) throughout the loan tenure. Policy Holder will get back the paid premium in the future. |
| Nomination | Beneficiary is bank | Beneficiary can be anyone. |
| Payment | Lump Sum Payment or financed into Mortgage Loan. | Payment Mode can be Annually, Semi Annually, Quarterly or Monthly. |
| Premium | Low | High |
| Example on premium* | One time RM1,186.34 | RM607.2 monthly or RM7,286.4 yearly or RM218,592 throughout the tenure |
| Example if there is no death or TPD* | At the end of tenure owner will received RM0 | At the end of tenure, owner will received RM218,592 |
| Example if there is death or TPD** | Insurance company will pay the loan balance of RM372k to the bank & beneficiary will received the home. | Insurance company will pay the loan balance of RM372k to the bank & beneficiary will received the home plus RM100k cash. |
MRTA’s Disadvantages
 | MLTA’s Advantages
 |